In India 7 crore people file tax returns. Of them 5 crore have zero tax. Only 2 crore out of 140 crore people actually pay tax. Out of the 2 crore the majority are salaried and are compelled to do so as their tax is deducted at source.
There are innumerable non-salaried people who earn lakhs and crores of rupees but do not pay any income tax. Mukesh Ambani has foregone his salary for the last 3 years, (a tactically smart move), as he would have to pay around Rs 6 crore as tax on his salary of Rs 15 crore.
This is what all the rich people do making income tax a travesty of sorts.
I propose that income tax be abolished and replaced by Social Justice Tax (SJT) @ 0.1% applicable every year on properties (except primary residential property) stocks, bonds and MFs of all Indians including salaried class, professionals, businessmen and politicians.
The proposed tax will net all these tax evaders, and earn the govt several times more revenue than the current income tax.
